May 2013 net worth update (+6.4%)

Spoiler: I flew past the $250,000 net worth marker! I’m a little sad that I didn’t just barely hit it and then pick up the speed the following month, but I’ll survive since it brings me that much closer to $300,000 in another few months ;)

31-Dec-2012 30-Apr-2013 31-May-2013 MoM YTD
cash $12,100 $6,700 $7,900 +$1,200 -$4,200
savings $26,800 $23,000 $23,100 +$100
+0.4%
-$3,700
-13.8%
investments $74,000 $102,800 $104,900 +$2,100
+2.0%
+$30,900
+41.8%
mortgage $259,600 $243,000 $230,500 +$12,500
+5.1%
+$29,100
+11.2%
net worth $211,300 $247,400 $263,400 +$15,900
+6.4%
+$52,100
+24.7%
assets – debts
(gap)
$146,700 $110,600 $94,600 +$15,900
+14.4%
+$52,100
+35.5%

May was a pretty good month for income! I got my second bonus of the year and threw it at the mortgage. I also averaged 11,850 Fitbit steps per day for the month (about 5.41 miles/day on average or 167.71 miles total!). That’s slightly down from April’s 171 miles, but still pretty good.

Expenses: I spent $2,570 in May ignoring work reimbursable expenses, which is better than last month, but still nowhere near my spending goal for the year (under $30,000 $24,000 in non-mortgage expenses). That puts 2013 so far at $13,430 or an average of $2,686/month. This would project forward to $32,232.

Some of my controllable expenses broke down as follows:

  • $0 Clothing (woo!)
  • $153 Entertainment/Social ($140 average this year)
  • $27  Eating out by myself  ($27 average this year)
  • $141 Groceries ($174 average this year)
  • $60 Work lunches ($70 average this year, $171 average this year)
  • $31 Internet
  • $4 Household goods
  • $185 VOIPo two-year subscription
  • $240 Medical and dental (ouch!)
  • $20 Eyebrows
  • $77 Hair cut
  • $15 Toiletries
  • $804 Furnishings
  • $35 Fuel ($23 average this year so far, $38 average last year)
  • $171 Travel – long weekend trip with some friends

This month was so-so for spending. I’m doing pretty well with the regular discretionary budget items. Furnishings is high because I bought and paid to install a ceiling fan in the master bedroom in my condo. This is going to be great for the summer! I also bought a wall clock for the front entryway. I think that the furnishings category spending is going to die down now as the only item left on my “To Buy” list is a frame for my Bachelor’s degree.

Based on some reviews online, I decided to try VOIPo for all calls that I make at home. I think that should keep my Ting minutes to the non-zero minimum (< 100). (It worked in May!)

Savings: $23,100 (up $100)

Current breakdown:

  • $20,100 in an online savings account
  • $600 in a checking account that gets free ATM fees anywhere in the world (for a just in case backup)
  • $1,500 in a Chase checking account for 6 months ($200 bonus for opening the account!)
  • $600 Condo furnishing sinking fund
  • $300 in my new Health Savings Account

I’ve decided that for now, I’m going to use the funds in my HSA account to pay for health expenses. I may re-evaluate next year, but that’s what I’m going to do for now.

Investments: $104,900 (up $2,100 or +2.0%)

This includes my Roth and Traditional 401(k), my 401(k) employer matching (fully vested!), my Roth IRA, my taxable investments including stock index funds and Series I Savings Bonds.

You might question my counting my Series I Savings Bonds under Investments vs Savings. I’m counting them here mostly because of their tax-deferred until maturity nature. I also consider them part of my emergency fund, but in reality my entire monetary (i.e. non-property) net worth is my emergency fund, so that doesn’t necessitate it being part of savings.

The increase here comes from:

  1. May paycheck savings to taxable stock index funds, offset by a small overall loss for the month

Mortgage: $230,500 (down $12,500 or -5.1%)

My mortgage is a 5/1 ARM at 2.5%. Before the refinance, it would have been paid off November 1, 2038. ~$5 less was paid in interest with the May 1st payment versus the April 1st payment.

This is where most of the action happened this month. The May 1st regular payment saw a bit of extra principal funds from my April paycheck, but I also threw my whole bonus at the mortgage. And it now feels like I have a $230,000 mortgage instead of the $245,000 mortgage that I had last month, which is awesome!

I estimate with the extra principal payments in May that the payoff date is down to August 1, 2038, shaving 22 months off of the amortization. (Almost two years of payments gone!) AND its amortization means it should now be paid off earlier than before the refinance! I need to send an additional ~$11,900 in extra principal payments this year to stay on track with the five year payoff plan, which I am on track to hit by the end of July, at which point I will most likely divert money to taxable investments / Roth IRA instead of the mortgage.

TOTAL: $263,400 (up $15,900 or +6.4%)

I ended 2012 with a net worth of $211,300, so I’ve seen a change of $52,100 or +24.7% so far this year. I’ve set the y-axis on this graph to $315,000 so we can see how my net worth grows towards that throughout the year. I’m currently projecting hitting $300,000 around August to October and $330,000 by the end of the year, for a total yearly increase of almost $125,000.

Interesting fact: my net worth increased by $78,800 in all of 2012. Five months into 2013, it is up $52,100 or about 66% of that figure.

May 2013 Net Worth Graph

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22 thoughts on “May 2013 net worth update (+6.4%)

  1. Amazing. Wow, you really flew through $250,000.

    We have a ceiling fan in our bedroom and I love it. It’s not the most attractive ceiling fan, but it makes summer sleeping so much nicer.

    • I know! I love bonus months :) Two more to go this year! And the next one will pretty much kill my Social Security tax liability for the year ;)

      Last summer was so unbearably hot in my bedroom. The living room was pretty bad too, but at least I wasn’t sleeping there. But I moved in late enough in the summer that I didn’t have time to figure out a ceiling fan. I’ve already used it a few nights and it is amazing. I’m so glad I got one with a remote control!

  2. It’s fun to watch it grow!

    Our a/c is having difficulties… I am so glad we have ceiling fans in every room… that’s the only thing making it bearable while we wait for a/c repair shops to open for the business week.

    • Thanks – I love watching it grow too! I actually drafted this after the bonus hit since that was most of the increase this month :)

      Ugh, that sucks about your A/C. I feel your pain because I don’t have one. Hence the ceiling fan in the bedroom and I have standing fans for the other rooms. I wanted to put a ceiling fan in the living room too, but the ceiling is too low :(

        • Definitely! But where I live, I only turned my heat off about 2 weeks ago and have had it on since mid-November, which is crazy because in my rental apartments, I never turned the heat or A/C on. I’m SO looking forward to the summer months’ electricity bills. Who knows, I might have to turn the heat back on again. I hope not – I really want to use the ceiling fan!

    • Thanks! I’m using VOIPo. I actually have a set of actual phones back from my Vonage days a few years ago. They shipped me an adapter, I plugged it in, and it worked to call my parents! I will re-evaluate once my two year subscription is up, but it seems great so far.

  3. NICE WORK taking a big chunk out of the mortgage. Love to watch those debt balances drop.

    We bought an Ooma device back in 2009 and haven’t paid a cent for home phone service since then. I love solutions like that, where the cost is 100% up-front with no ongoing fees.

    • Thanks! Love it too. It’s way more satisfying to throw big chunks at it at a time. Almost makes me want to accumulate a few months’ savings in an account and only pay it down in $10,000 chunks ;)

      Ooma was a great deal a few years ago, but unfortunately it no longer is for new customers. I wish I’d signed up back in 2010 instead of with Vonage! A friend is using a different VOIP service than VOIPo, so I’ll check his service out when my 25 months are up in mid-2015. Do you guys have prepaid/cheap cell phone plans then since you have the VOIP service at home?

  4. I’m using my HSA mainly for future healthcare expenses. I do reimburse myself, but current costs are so minimal. I invest everything in excess of 1k. My HSA custodian recently removed their only Vanguard fund, and the remaining choices have much higher fees. Bummer. At least my employer contributes 1k into it.

    Congrats on hitting over 250k!

    • I doubt I will hit the deductible, so the amounts I take out now are not really going to affect the balance all that much. I’m going to re-evaluate my overall plan for the account once I have one year’s max out of pocket total in there.

      Thanks!

  5. Love the table. Holy smokes, can’t believe you are already over $250k in net worth. That’s amazing! I’m hoping my assets – debt will go to -$1,000,000 by the time I’m ready to call it quits :)

    • Thanks, me neither! It’s pretty crazy how much a normal net worth increase is these days :)

      Haha, but you plan to get to FI with leveraged real estate, sort of like arebelspy in the MMM forums. Him and his wife just hit FI recently in their late twenties!

  6. Congrats. Just wait until you reach 300K range in invested assets and a bad or good month (or even week) in the market can fairly often equal your monthly after tax paycheck. It can be both exciting and depressing depending which direction the Market moves (exciting early May, depressing now).

    • Thanks! I’m not forecasting hitting 300K In invested assets until 2016 or so, after the mortgage is paid off. In January of this year, my investments grew by 2x what I put in. What was only about a third of my after tax paycheck though. There have been a few months where my investments have gone up/down by more than what I put in that month, but nowhere near my monthly after tax paycheck yet. It’s definitely been interesting watching the swings get bigger as my invested assets grow every month!!

  7. It’s so fun to watch your net worth grow!!!! That’s incredible!!! Looking at your budget, you are incredibly frugal! I love it! What kind of furnishings did you buy?

    • Thanks! I love watching it too :) I bought a ceiling fan for the master bedroom and paid to have it installed. That’s been pretty nice with the summer days so far :) Fyi the expenses total listed above doesn’t include the mortgage P&I payments since I’m assuming that will be paid off in a few more years.

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